Economy

Toshiba Gains as Auditor Finally Gives Tick of Approval

Toshiba Gains as Auditor Finally Gives Tick of Approval

The auditor, PricewaterhouseCoopers Aarata, however, issued an "adverse opinion" on Toshiba's internal controls as the 142-year-old Japanese company overlooked huge losses linked to the now-defunct USA nuclear power unit Westinghouse Electric.

"Toshiba considers that its internal controls on processes for financial results worked effectively, allowing it to submit its Internal Controls Report to he Kanto Finance Bureau today, but PwC Arata nonetheless expressed and Adverse Opinion", a statement from Toshiba read.

On Thursday, Toshiba handed its financial results for the business year ended March 2017 to the Kanto Local Finance Bureau after missing the original deadline in June. The company will be delisted if it reports negative net worth for the second year. Even if Toshiba manages to agree on a deal in the next few weeks, the sale would still have to be reviewed by antitrust authorities around the world.

The move by one of Japan's best-known firms greatly reduces the chance of an embarrassing delisting from the Tokyo Stock Exchange (TSE).

"Of course, we will refer to the opinion attached to the annual results but a (good opinion) does not mean that Toshiba will stay listed while a (lower opinion) does not mean delisting", the bourse official said. The auditors have already provided their opinion about the dark future of the organization and said that the delisting got delayed due to PwC signed-off.

A major sticking point has been an inquiry from PwC over whether Toshiba should have recognized multi-billion dollar losses at US nuclear arm Westinghouse earlier than last December, sources familiar with the matter have said.

There were growing worries that Toshiba may not make Thursday's deadline to supply financial statements for the fiscal year ended in March, as it was at odds with its auditor over multi-billion dollar losses at Westinghouse.

That has unnerved Toshiba's preferred bidder group, a consortium including Japanese government-backed funds, private equity firm Bain Capital LP and South Korean chip maker SK Hynix Inc. PwC took over as Toshiba's auditor in June previous year.